Police have launched an investigation into the £90 million revamp of Ysbyty Glan Clwyd, NHS Wales bosses have confirmed.

The shock revelation was made at an Assembly Committee meeting earlier today (June 16), where Dr Andrew Goodall confirmed there was a probe into Betsi Cadwaldr University Health Board’s capital spending plans.

Dr Goodall – chief executive of the NHS in Wales – also revealed that it could take up to three years to sort out the scandal-hit board.

He refused to expand any further on the details of the police investigation other than to say it was a “discreet” issue.

A spokesman for the health board confirmed that two members of staff have been suspended and that the investigation relates to the ongoing hospital’s multi-million revamp.

And the health board released a statement saying: “Early in 2014 concerns arose regarding the cost of the Ysbyty Glan Clwyd hospital redevelopment programme. The Health Board took swift action to initiate an audit review of the scheme and subsequently referred matters to NHS counter fraud services.

“An investigation involving NHS counter fraud services and North Wales Police is, we understand, ongoing. Two members of staff are suspended whilst this investigation progresses.

“The Health Board immediately reviewed and made changes to the governance and control processes.”

The decision to place the board under more direct Government control came just weeks after a report found “institutional abuse” at the now closed Tawel Fan mental health unit at Ysbyty Glan Clwyd.

But Dr Goodall said the special measures tipping point was not the Tawel Fan report but a “need to act differently” due to a number of concerns including the out-of-hours GP report, maternity services and financial problems.

Dr Goodall also confirmed his deputy Simon Dean drafted in by the Welsh Government as the interim CEO of Betsi to help them through the Special Measures process would be in place for “no more than four months”.

Giving evidence during the Public Accounts Committee Dr Goodall said it could take up to three years to sort out issues at the board and it was unrealistic to think they would be resolved by the review scheduled for four months time.

Dr Goodall, who has only been in the role for just over a year said leadership arrangements would then have to be looked at on the board.

He said: “I think the four month check point as part of Special Measures is clearly not an expectation that suddenly everything is sorted within that time.”

He added: “We are feeling we are working at a time scale that is over one to two years and building up to three years, but always with clear mile stones in place.”